Currency

Certain currencies are said to be "pegged" or "fixed" to something, usually another currency. A fixed or pegged currency is one that has a constant value compared to what it is pegged to. For example, the Cape Verdianescudo is pegged to the Euro. If the value of the Euro goes up 1% compared to another form of currency, the value of the escudo also goes up 1% compared to that same currency. Many countries have used systems where their money was pegged to something other than currency, for example gold. When they do this, as the value of gold increases, so does the value of their money. Doing this is commonly called using the "Gold standard". Most countries stopped using the Gold standard in the 20th century.